India’s cryptocurrency market is undergoing a remarkable transformation, characterized by growth in adoption across non-metro regions. This shift signifies the decentralization of crypto investment from its traditional urban hubs to smaller cities and towns, as highlighted in the CoinSwitch Annual Report 2025, titled India’s Crypto Portfolio: How India Invests.
The Shift to Smaller Cities
With insights from over 25 million users, the report reveals that Tier 2, Tier 3, and Tier 4 cities now constitute more than 75% of crypto activity on the CoinSwitch platform. Tier 2 cities make up 32.2% of users, while smaller Tier 3 and Tier 4 cities contribute a dominant 43.4%. This democratization mirrors trends seen in India’s equity markets, where financial inclusion is rising in non-metropolitan areas.
Changing Investment Patterns
Among states, Uttar Pradesh leads with 13% of overall crypto investment value, surpassing Maharashtra (12.1%) and Karnataka (7.9%). Interestingly, states like Bihar are emerging as risk-forward regions, favoring mid- and small-cap tokens, while Andhra Pradesh investors are inclined toward large-cap assets. Karnataka, however, prioritizes blue-chip investments.
Moreover, Bitcoin reclaimed its prominence as the most-invested cryptocurrency, with an 8.1% allocation, overtaking Dogecoin. Ripple’s XRP also witnessed a surge in trading activity, securing its position as one of the top-traded assets on the platform.
Influence of Generational and Gender Trends
The report also highlights that younger investors primarily drive this growth. The 26-35 age demographic accounted for 45% of total investments, while the 18-25 bracket made up roughly 25.3%. Women still only account for 12% of overall participation, with Andhra Pradesh standing out as a rare exception, where women make up over 59% of crypto investors.
Why India’s Crypto Market Is Maturing
Several factors are contributing to the rapid growth of crypto markets in India’s smaller towns. Improved internet access, widespread smartphone adoption, increased financial literacy, and the appeal of alternative assets are motivating new investors. Additionally, platforms like CoinSwitch are making it easier than ever for aspiring investors to participate in crypto markets.
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The Road Ahead
The findings underscore India’s transformation into a more inclusive and decentralized crypto ecosystem. With smaller cities driving the next wave of growth, coupled with increasing participation from younger and diverse demographics, the Indian crypto market is poised to continue its meteoric rise in the coming years.
